TRAINING AND DEVELOPMENT AS STRATEGIC HR FUNCTION: A STUDY OF HR EXECUTIVES

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International Journal in Commerce, IT and Social Sciences

Volume 5 Issue 07, July 2018 ISSN: 2394-5702 Impact Factor: 4.218

Journal Homepage: http://ijmr.net.in, Email: [email protected] Double-Blind Peer Reviewed Refereed Open Access International Journal

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International Journal in Commerce, IT and Social Sciences http://ijmr.net.in, Email: [email protected]

TRAINING AND DEVELOPMENT AS STRATEGIC HR FUNCTION: A STUDY OF HR

EXECUTIVES

Mr. Surender Jeet Raj

Senior V.P. HR, Newgen Software Technologies, New Delhi

Dr. Manoj K.Sharma

Professor, University Business School, Panjab University, Chandigarh

ABSTRACT

Training and development is an integral part of HR function in the changing business environment.

!6 items scale has been formulated in the present study which has been tested for its reliability. The

technique of factor analysis has been used to identify important items of T&D and chi square test

applied to examine if there exists any association between age, experience and designation of 302

HR executives from whom the information was collected

Economists have viewed training and employee development as a means of engaging the

commitment of employees to the enterprise (Rainbird, 1994; Heyes and Stuart,1996)

Reynolds (2004) points out , training has a complementary role to play in accelerating the

Learning. It should be reserved for situation that justify a more directed , expert led approach rather

than viewing it as a comprehensive and all pervasive people development.

In the dynamic world of business, the objectives keep on changing which calls for proper

identification of learning needs of workforce. Then proper planned training programs need to be

established. In this what techniques are to be used what facilities are to be provided and at which

location .The in house training or help of outside trainer is required are to be identified by HR.

There has to proper implementation of the training programme and then its proper evaluation is

required by HR.

The training and development needs of any organisation needs following steps

Define learning objectives

Decide on Content

Decide on methods of delivery

Establish Training needs

The role of training and development in increasing the competitive advantage as compared to

others is well documented. The employee quality of a particular organization is bound to give it

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International Journal in Commerce, IT and Social Sciences http://ijmr.net.in, Email: [email protected] customer requirement. Training‟s role has broadened from its traditional focus on teaching skills

and knowledge, to linking training to business needs, and to using training to create and share

knowledge. Core competency of a firm can be preserved via investment in Training and

development. Boxall and Purcell suggest that „Human Resource planning can be traced back to

better people employed in the organizations with better processes‟

The best form of a firm‟s assets are skills set and they could not be easily replicated by the

competitors but as environment and technology changes , they need constant upgrading for training

to be source of competitive advantage, because competitive advantage in the basis of market

responsiveness , product and service quality, differentiation products and technological innovation.

Training improves the performance of employees, which in turn improves the firm‟s financial

performance. Another paper titled Three Strategic training roles authored by Ralph Catanello and

John Redding, there is a lack of link between training and strategy and to drive proper performance

training should be linked to a company‟s strategic business plan.

We can make the training and development count as a strategic HR tool by the following ways.

Look for improvement in scores on your Employee Perception Survey against leadership related

questions. This is a direct indicator of a positive change of your leadership program.

If you are able to identify successors for leadership position, it is true reflection of improved

leadership programs.

A thorough analysis, clear cut objectives, well-though out design, robust assessment and a

seasoned facilitator can contribute to an effective training intervention.

For face to face training observe the reaction of the participants through the responses to various

exercises done in class and or tests administered in class, or his behavioural changes.

Conduct small exercises at work, which show the impact of learning through implementation and

results, which would reflect on the score card /Goal sheet.

Training and development play an important role in the effectiveness of organisations and to the

experiences of people in work. Training has implications for productivity, health and safety at

work and personal development. All organisations employing people need to train and develop

their staff. Most organisations are cognisant of this requirement and invest effort and other

resources in training and development. Such investment can take the form of employing specialist

training and development staff and paying salaries to staff undergoing training and development.

Investment in training and development entails obtaining and maintaining space and equipment. It

also means that operational personnel, employed in the organisation‟s main business functions,

such as production, maintenance, sales, marketing and management support, must also direct their

attention and effort from time to time towards supporting training development and delivery. This

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International Journal in Commerce, IT and Social Sciences http://ijmr.net.in, Email: [email protected] terms of the organisation‟s main business. However, investment in training and development is

generally regarded as good management practice to maintain appropriate expertise now and in the

future. (Dr. Andrew Shepherd)

The purpose of training and management development programs is to improve employee

capabilities and organizational capabilities. When the organization invests in improving the

knowledge and skills of its employees, the investment is returned in the form of more productive

and effective employees. Training and development programs may be focused on individual

performance or team performance. The creation and implementation of training and management

development programs should be based on training and management development needs identified

by a training needs analysis so that the time and money invested in training and management

development is linked to the mission or core business of the organization (Watad & Ospina, 1999).

Employees at different stages of life need different kinds of training and different kinds of

development experiences. Although a business degree might prepare students for their first job,

they will need to gain knowledge and skills through education and experience as they progress

through their career.

Impact of training and development on performance can be seen from various studies. Hitt, R

(2001) found that training investment first generates a negative effect on results, which later

becomes positive as far as the transfer of knowledge to the post is concerned. Kock and Mc Grath

(1996) does not directly analyse the relationship of training with performance, instead it uses a

personnel development index that showed a slightly significant effect on work productivity

measures by net sales per employee. Ubeda, G. (2005) finds a significant relationship with the

productivity, which accounts for an average period of maturation of the higher training investment.

In some studies such as Tzafrirs (2005), it is assumed that the investment in the training can

produce some negative effects: Example, cost on company, employer does not achieve a reciprocal

commitment on the part of the employee.

Training and development programmes have faced various Challenges, as Phillips J.J and Pulliam

P.F (1997) in the article on “The seven key Challenges facing Training and Development” states.

The Training & Development is crucial aspect of HR for any organisation but HR has to develop it

a key tool for its success and which can make HR as key strategic partner in business. This can be

achieved by HR team ensure that training and development are in improving performance of

employees in particular by giving proper training and conducive work environment for employees

to show good results. It is HR function which has to fix business and people related problems and

by making organisation versatile. This can be achieved by HR staff involvement in measurement

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International Journal in Commerce, IT and Social Sciences http://ijmr.net.in, Email: [email protected] The proper Training and Development courses are to be developed and designed by HR keeping in

view the individual employees needs and they have to be in consonance with organisational or

business needs of the company. This in turn will ensure proper synergy between the employees and

employer. The short term courses which are to be properly designed to educate and improve the

knowledge of the employees as well skill enhancements and attitude building and changing soft

skills needs to be designed by strategic HR business partner only. HR needs to evolve regular

training needs for all business stake holders like vendor‟s development, suppliers training and

development needs. The impact of training initiative of HR function needs to properly evaluated.

On many fronts the evaluation by the participants themselves at the end of the program is one way

of evaluation, while formal evaluation through examination /tests after the program is other

methods of evaluating the training and development program.

HR function has to oversee that training and development contents are aligned with the broad

business strategies. Moreover, it is pertinent that employees are often held responsible for their

own learning and development. It is often seen that branch heads/ managers are held accountable

for their subordinates learning & development needs and requirements, which in turn are to be

monitored by HR function only.

OBJECTIVES AND METHODOLOGY OF THE STUDY

1. To identify the important components of training and development schemes to make T&D as a

Strategic HR function.

2. To study if any association exists between age, Experience and Designation of HR executives

and various T&D program as Strategic HR function.

The present study is primarily based on field survey and data collected through structures

questionnaire based on 18 items scale, based on qualitative interaction done with 50 practionnaire

HR professionals. In all 302 respondents data was analysed .The reliability test was done and

Cronbach's Alpha came out to be .863 for all the 16 items, which is sufficient. The details of all

selected 16 items are given in Table 1. The technique of factor analysis was used to derive

important factors of T&D. The chi square test was applied to test if any association exists between

various items of T&D and Age, Experience and Designation of HR executives. The data was

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Table 1 Details of 16 items of T&D

Training & Development(T&D)

T&D_1A HR team ensures that T&D Program are effective in Improving Performance

T&D_1B Performance improvement can be done by fixing business and people related

problems by undertaking T&D Program.

T&D_1C Performance improvement can be done by making organization versatile by

undertaking T&D Program

T&D_2 The HR staff involvement in measurement and evaluation is done by staff

members trained for the job.

T&D_3A The Training and Development program consists of courses designed to meet

individual needs.

T&D_3B The Training and Development program consists of courses designed to meet

business needs.

T&D_3C The Training and Development program consists of courses designed are usually

shot seminar type.

T&D_3D The Training and Development program consists of courses designed to educate

and improve knowledge/skills/attitude.

T&D_3E The Training and Development program consists of courses designed

vendor/partner training

T&D_4A The Impact of Training & Development initiative is evaluated Sometimes but not

always.

T&D_4B The Impact of Training & Development initiative are evaluated by

participants at the end of the program

T&D_4C The Impact of Training & Development initiative are evaluated

Testing/Examination during/after the program

T&D_4D The Impact of Training & Development initiative are evaluated

Post course assessment or business results

T&D_5 Training and Development activities are aligned with business strategies.

T&D_6 Employees are held responsible for their own learning and development.

T&D_7 Managers are held accountable for their subordinates learning and development

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Table 2 Scale: ALL VARIABLES OF TD

Case Processing Summary

N %

Cases

Valid 302 100.0

Excludeda 0 .0

Total 302 100.0

a. List wise deletion based on all variables in

the procedure.

Table 3

Reliability Statistics

Cronbach's

Alpha

N of Items

.863 16

RESULTS AND ANALYSIS

Table 4 Descriptive Statistics of T&D items Item Statistics

Mean Std. Deviation N

TD1A 3.8907 1.09574 302

TD1B 3.9040 1.12095 302

TD1C 3.5629 1.26321 302

TD2 3.7550 .91111 302

TD3A 3.0828 1.20482 302

TD3B 3.3510 1.20187 302

TD3C 3.0563 1.23896 302

TD3D 3.2483 1.27638 302

TD3E 2.9205 1.23634 302

TD4A 2.9934 1.21724 302

TD4B 3.3179 1.23553 302

TD4C 3.3907 1.21439 302

TD4D 3.0265 1.21970 302

TD5 3.6821 1.00742 302

TD6 3.6325 1.08784 302

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International Journal in Commerce, IT and Social Sciences http://ijmr.net.in, Email: [email protected] From the Table 4 it is very clear all the 16 items pertaining to t &D are considered very important

by the HR executives, as the values of all 16 items are 3 and above. This means executives agree to

the fact that T&D should be important and integral part of HR function in promoting T&D

activities of the employee‟s fir long term success of the organizations.

Table 5 shows the KMO measure of sampling adequacy is 0.767 which is a good measure

indicating adequacy of sample for conducting factor analysis. The chi square value is 940.818 with

significance value of 0.000 which again shows goodness of fit.

Table 5 KMO and Bartlett’s Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .767

Bartlett‟s Test of Sphericity Approx. Chi-Square 940.818

Df 120.000

Sig. .000

Table 6: Total Variance explained (Training and Development)

Component

Initial Eigen values Extraction Sums of

Squared Loadings

Total

% of

Variance

Cumulative

% Total

% of

Variance

Cumulative

%

TD-1A 3.877 24.231 24.231 3.877 24.231 24.231

TD-1B 1.637 10.232 34.462 1.637 10.232 34.462

TD-1C 1.303 8.143 42.605 1.303 8.143 42.605

TD-2 1.197 7.478 50.084 1.197 7.478 50.084

TD-3A 1.046 6.535 56.619 1.046 6.535 56.619

TD-3B .948 5.924 62.544

TD-3C .873 5.457 68.001

TD-3D .819 5.118 73.119

TD-3E .683 4.266 77.384

TD-4A .681 4.255 81.640

TD-4B .604 3.775 85.414

TD-4C .553 3.459 88.873

TD-4D .527 3.296 92.169

TD-5 .478 2.987 95.155

TD-6 .406 2.536 97.691

TD-7 .369 2.309 100.000

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International Journal in Commerce, IT and Social Sciences http://ijmr.net.in, Email: [email protected] Table 6 shows the total variance explained by five factors, i.e., 56.619%. The table also shows that

factor 1 explains 24.231% variance and factor 2 explains 10.232% variance, factor 3 explains

8.143% variance, factor 4 explains 7.478% variance and factor 5 explains 6.535% variance.

According to table 18 which is the rotated component matrix, five factors have been extracted

which are as follows:

Factor 1: TD-2, TD-5, TD-6, TD-7

Factor2TD-1B,TD-1C,TD-3BTD-4B

F3: TD-3A, TD-3C, TD-3E, TD-4A

F4: TD-3D, TD-4D

F5: TD-1A, TD-4C

Table 7: Rotated Component Matrix

Component

1 2 3 4 5

TD-1A .341 .291 .133 .278 .349

TD-1B .085 .747 .067 .173 .083

TD-1C .288 .435 .062 .203 .155

TD-2 .663 .149 -.082 .167 .085

TD-3A .153 .238 .524 .420 -.215

TD-3B -.086 .669 .398 -.297 -.205

TD-3C -.065 .005 .791 .010 .303

TD-3D -.064 .072 -.031 .788 -.126

TD-3E .068 .139 .589 .452 .151

TD-4A .424 .103 .522 -.028 -.238

TD-4B .227 .674 -.002 .148 .167

TD-4C .014 .149 .093 -.067 .836

TD-4D .118 .144 .240 .642 .126

TD-5 .756 .049 .006 .022 -.060

TD-6 .456 .144 .340 .204 .065

TD-7 .732 .104 .144 -.181 .048

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

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International Journal in Commerce, IT and Social Sciences http://ijmr.net.in, Email: [email protected] Factor 1: TD-2 (The HR staff involvement in measurement and evaluation is done by staff

members trained for the job), TD-5 (Training and Development activities are aligned with business

strategies), TD-6 (Employees are held responsible for their own learning and development), TD-7

(Managers are held accountable for their subordinates learning and development progress)

Factor 2: TD-1B (Performance improvement can be done by fixing business and people related

problems by undertaking T&D Program), TB-1C (Performance improvement can be done by

making organization versatile by undertaking T&D Program), TD-3B (The Training and

Development program consists of courses designed to meet business needs), TD-4B (The Impact

of Training & Development initiative are evaluated by participants at the end of the program)

Factor 3: TD-3A (The Training and Development program consists of courses designed to meet

individual needs), TD-3C (The Training and Development program consists of courses designed

are usually shot seminar type), TD-3E (The Training and Development program consists of courses

designed vendor/partner training), TD-4A (The Impact of Training & Development initiative are

evaluated Sometimes but not always)

Factor 4: TD-3D (The Training and Development program consists of courses designed to educate

and improve knowledge/skills/attitude), TD-4D (The Impact of Training & Development initiative

are evaluated Post course assessment or business results)

Factor 5: TD-lA (HR team ensures that T&D Program are effective in Improving Performance),

TD-4C (The Impact of Training & Development initiative are evaluated Testing/Examination

during/after the program)

Table 6-8 shows the relationship between Age, Experience and Designation of HR executive with

16 items pertaining to T&D

It is seen that in case of TD_3E (T&D designed to vendor/partner training) has a significant

association with age of HR executives. Summarily evaluation part of T&D _4C has significant

association with age. Both managers and employees are made responsible for success of training.

(TD-6 andTD-7) .For other 12 items there is no association with age.

Table 8 of Age with dimensions of Training and Development

Relationship of Age with

Training and Development

Value of Chi-

Square

Asymp-sig (2-

sided) Valid cases

Age*TD-1A 0.773 0.856 298

Age*TD-1B 5.170 0.160 292

Age*TD-1C 2.436 0.487 299

Age*TD-2 1.292 0.731 268

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Table 9 Relationship of Designation with dimensions of Training and Development

Relationship of Designation

with Training and

Development

Value of Chi-

Square

Asymp-sig (2-

sided) Valid cases

Des*TD-1A 13.273 0.004*** 298

Des*TD-1B 3.940 0.268 292

Des*TD-1C 16.023 0.000* 299

Des*TD-2 0.554 0.907 288

Des*TD-3A 8.541 0.014*** 291

Des*TD-3B 4.216 0.239 292

Des*TD-3C 5.522 0.137 290

Des*TD-3D 1.405 0.495 297

Des*TD-3E 3.778 0.286 299

Des*TD-4A 0.811 0.847 293

Des*TD-4B 7.925 0.048 274

Des*TD-4C 1.516 0.69 280

Des*TD-4D 1.391 0.708 282

Des*TD-5 7.017 0.071 266

Des*TD-6 0.693 0.875 263

Des*TD-7 1.181 0.758 250

Age*TD-3B 1.317 0.725 292

Age*TD-3C 7.409 0.060 290

Age*TD-3D 4.211 0.240 297

Age*TD-3E 12.742 0.005** 299

Age*TD-4A 3.168 0.366 293

Age*TD-4B 3.101 0.376 274

Age*TD-4C 8.622 0.046* 286

Age*TD-4D 11.951 0.003*** 282

Age*TD-5 3.506 0.220 268

Age*TD-6 8.949 O.030** 263

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International Journal in Commerce, IT and Social Sciences http://ijmr.net.in, Email: [email protected] Only three items namely TD-1A, 1C and 3A have shown significant association with designation

while for other 13 items there is no association between the designation of employees and T&D

schemes. Thus all items are uniformly important across all levels of designations.

Table 10 Relationship of Work Experience with dimensions of Training and Development

From the table 10 it is clear that no item of T&D have any association with the experience of HR

executives. This again shows that most of items of T&D are not relationship with the level of

experience. In other words whether HR executives are young or old they equally feel T&D as

being important domain of HR function which needs to be groomed in any organization

irrespective of demographics of people as it is considered crucial for success of any organizations.

CONCLUSIONS AND RECOMMENDATIONS

The study has identified 16 items to represent various facets of T&D programs .All 16 have been

found to be very important part of HR function. All 16 have classified into five major components,

and all five are equally important in explaining the variance across programs. But the first

component cold explains 24 % of variance. The most important items of first factor are directly

linked to HR function being given a strategic role. For example item 2 pertains to involvement of Relationship of Work Experience

with Training and Development

Value of Chi-

Square

Ssymp-sig (2-

sided)

Valid

cases

Exp*TD-1A 4.474 0.215 298

Exp*TD-1B 0.294 0.96 1 292

Exp*TD-1C 3.352 0.187 299

Exp*TD-2 1.564 0.668 268

Exp*TD-3A 0.067 0.967 291

Exp*TD-3B 0.637 0.888 292

Exp*TD-3C 1.341 0.719 290

Exp*TD-3D 0.683 0.711 297

EXP*TD-3E 1.705 0.636 299

Exp*TD-4A 0.922 0.820 293

Exp*TD-4B 4.279 0.233 274

Exp*TD-4C 2.906 0.406 286

Exp*TD-4D 1.195 0,754 282

Exp*TD-5 3.522 0.318 268

EXp*TD-6 3.852 0.278 263

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International Journal in Commerce, IT and Social Sciences http://ijmr.net.in, Email: [email protected] HR in proper measurement of T&D programs and fixing of responsibilities on both employees and

managers for learning and development. This again calls for strategic HR strategic role in

promoting the overall success of organizations.

REFERENCES

Catalanello R and Redding J, 1989. Three strategic training roles. Training and development

Journal, December, 1989, 51-54.

Gupta R, Sahoo C, 2014. Role of training towards competitive advantage. Indian Journal of

training and development, January-March, 2014, 32-40.

Book (Michael Armstrong

http://www.bersin.com/blog/post/2012/02/Recruitment-is-NOT-Talent-Acquisition.aspx

http://www.alignmark.com/blog/bid/41615/Talent-Acquisition-Measuring-Quality-of-Hires-Versus-Quantity

http://www.alignmark.com/cost-of-turnover-calculator/

https://www.recruiter.com/i/talent-acquisition-manager/